You know in 5 minutes! Introduction to offshore investment

Here, we will introduce what kind of foreign fund investment is in the Q & A format in order to promptly understand “overseas fund investment (overseas diversification investment)”.


Q1 – What is an overseas fund?

Simply put, it refers to an investment trust that has “registered” overseas. Investment trusts are financial instruments operated by fund managers who collect funds from a large number of investors and our investment professionals.

There are things that are listed and unlisted, but in order to avoid mistakes, it is the iron rule that funds invest in funds listed on overseas markets, basically.

Q2 – What are the benefits of overseas fund investment?

It is said that overseas funds are about 60,000 or more. Since the public investment trusts in Japan are about 5 thousand, the difference is clear. It can be said that there are many diversified products as much as that.

Investment fund type funds generally sold in Japan are called mutual funds overseas. Overseas, there are many funds that use operational methods that are not found in Japan, such as alternative funds that invest in insurance and products, and hedge funds that use derivative transactions. From such a large number of funds, it is possible to choose funds that match your “investment objectives”.

In addition, if the fund has “registered” in an area where the tax system called offshore is preferential, it is possible to expect “tax saving/compound interest effect” due to tax not being applied during the operation period.

Q3 – What are the points to pay attention to overseas fund investment?

As mentioned above, it is very difficult for individual investors to find excellent overseas funds themselves because of financial instruments that are not registered in Japan.

In fact, there were several fraud cases in the past that sang high-yield overseas funds. Although it is not fraud, funds that operate well for only 2 or 3 years after establishment, there are also funds that will drop sharply thereafter, so be particularly careful about funds with a short operation period.

There are others in Japan and overseas introducing a certain fund for sale purpose, so you must be careful with such solicitation. However, it is extremely difficult for individual investors to actually judge this by their own power alone.

Therefore, in principle, investing in overseas funds can be said to be the most reliable investment method by having a professional investment advisor (investment advisory company) to make an operation plan suitable for you.

And, of course, it is an investment, so even if you are an overseas fund with many choices, there are not many guaranteed principal, so you need to understand that point.

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